Free Practice IIA IIA-CIA-Part2 Exam Questions 2025

As part of a preliminary study during an audit of the payment process in accounts payable, an internal auditor requests a list of procedures from the finance manager. The auditor intends to establish whether activities documented in the procedures are undertaken by respective employees as prescribed. Which of the following internal audit techniques will provide the most persuasive information to achieve this objective?

An auditor decides to perform an inventory turnover analysis for both raw materials inventory and finished goods inventory. The analysis would be potentially useful in:

I. Identifying products for which management has not been attuned to changes in market demand.

II. Identifying potential problems in purchasing activities.

III. Identifying obsolete inventory.

An internal auditor was assigned to review controls in the accounts payable function. Most of tie accounts payable processes are performed by a third-party service provider. The auditor included in the audit report a number of control deficiencies involving processes performed by the service provider. The service provider requested a copy of the report Which of Vie following would be the most appropriate response from the chief audit executive (CAE)?

Management has asked the internal audit activity to perform an operational audit of a division that recently reported an increase in expenditures in addition to a decrease in profits. However, existing internal audit resources are currently engaged in a legal compliance audit. Which factor would be considered least important in deciding whether resources should be removed from the legal compliance audit to the operational audit? 

Which of the following will be an appropriate course of action when an auditor disagrees with a client about a well-documented audit finding?